Local
EconomyHealthy
communities require strong local economiesMany
people are beginning to understand that locally-owned businesses are
much more
beneficial to a community than businesses operated by absentee owners
or large chains
with little or no concern for the local residents and the well-being of
their
community. Around the U.S. and in other countries, citizens and
businesses are beginning to support each other for the benefit of
everyone in the
community.

GlobalismThe
pitfalls of globalization

In
effect, Americans threw away their communities in order to save a few
dollars on hair dryers and plastic food storage tubs, never stopping to
reflect on what they were destroying. The necessary restoration of
local networks of economic interdependence, and the communities that
rely on them, will be a major theme later in this book.

(Quote
from The Long
Emergency)Jeff Vail
provides a fresh perspective on globalization. Ask yourself if you
would be better off living in a country which can supply most of its
own necessities or in one with a narrow specialization such as
providing cheap labor to foreign garment manufacturers. Article.

More on
Globalization coming soon.

Complementary
CurrenciesOne means of building a
sense of community is by having members use a complementary local
currency whenever
possible to pay for the purchases of goods and services. During the
great depression economic hardship was exacerbated for average
Americans by the shortage of money after the Federal Reserve cut back
on the supply.

Local
currency is a currency not backed by the national government and
intended for trade only in a small area such as a town or region. These
currencies are also
referred to as community currency. Complementary currency and local
currency are often used as synonyms.

Advocates such as Jane
Jacobs argue that this enables an economically
depressed region to pull itself up, by giving residents a medium of
exchange that they can use to exchange
services and locally-produced goods (In a broader sense, this is the
original purpose of all money.) Opponents of this concept argue that
local currency creates a barrier which can interfere with economies of
scale and comparative advantage, and that in some cases it can serve
as a means of tax evasion.

Local currencies can also come into being when there is economic
turmoil involving the national currency. An example of this is the
Argentine economic crisis of 2002 in which IOUs issued by local
governments quickly took on some of the characteristics of local
currencies.

Fuel shortages have the potential to choke off a substantial portion of
global trade. In the event that this occurs, nations and communities
will need to begin producing local substitutes for goods currently
produced in distant low-wage regions such as China.

According to Lester Brown, "Restructuring the global economy so that
economic progress can be sustained represents the greatest investment
opportunity in history." Brown sees the growth of new localized
industries related to renewable energy, food production, appropriate
technology, efficient transportation, green
design, bioremediation, sustainable agriculture,and rooftop gardening, as
the world enters into power descent

Sources of information on building healthy local economies include:

American Independent Business Alliance
Helps communities and locally-owned businesses mutually support each
otherAndersonville Study
of Retail Economics
This is a study conducted in Chicago. The study found:
Local merchants generate substantially greater economic impact than
chain retailers. Development of urban sites with directly
competitive chain merchants will reduce the overall vigor of the local
economy. Modest changes in consumer spending habits can generate
substantial local economic impact. For every $100 in consumer spending
with a local firm, $68 remains in the Chicago economy vs. $43 for
spending at a chain store. For every square foot occupied by a local
firm, local economic impact is $179 vs. $105 for a chain storeBenefits of Doing
Business Locally
Benefits to communities and citizens in patronizing local businessesBusiness Alliance
for Local Living Economies (BALLE)
Building long-term economic empowerment and prosperity in communities
through local business ownership, economic justice, cultural diversity
and a healthy natural environment.Buying Local and
the Circulating Dollar
Often local business prices are lower than chain stores, and the money
you spend there stays in the community.Local Ownership
Pays Off for Communities
Financial benefits to the community of locally-owned businessesThe Home Town
Advantage
Reviving Locally-Owned Business - From the New Rules Project